TaxTMI 
TaxTMI 
2026 (1) TMI 441
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....ingh, ld. Joint Commissioner appeared and argued for the Revenue in both the Appeals and Ms. A. Aruna, ld. Advocate appeared and argued for the Assessee in both the Appeals. We have carefully considered the documents placed on record before us, in support, by both the parties. 3. The imported goods have been declared as "Actuator Assy. Clutch" and "Tube Connector Assy.-Clutch" since these are the subject-matter of the classification dispute in the present Appeals, at least a rudimentary understanding of their functions is crucial to determining their classification. The impugned orders as well as the verbal and written submissions presented by both the sides have thrown sufficient light in this regard, to enable us to understand the factual background and importance of these items involved. Hence, we are only reproducing some of the facts, in our endeavour to answer the issue regarding classification. 4. The issue before us to be addressed to is, "whether subject items are classifiable under CTI 8708 9900 as ordered in the subject original orders or under CTI 8708 9300 as proposed in the subject SCN." 5. It is the case of the Department that the subject item is part of Clu....
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....ntrolled by control signal) and a source of energy. Its main energy source may be an electric current, hydraulic pressure, or pneumatic pressure. An Actuator helps a machine or device to achieve physical movements by converting energy into mechanical force. 7. Tube Connector Assembly connects Actuator Assembly and the Concentric Slave Cylinder and supplies clutch oil from reservoir to concentric slave cylinder (CSC). It is made of plastic, rubber and metal. It is only used to convey the pressure/force to the concentric slave cylinder through clutch oil and it is only a passage for the oil between the reservoir and the CSC. 8. From the data provided, we find that the iMT is entirely controlled by Electronic Transmission Control Unit and the Actuator acts by the input and control of the TCU. The transmission of power from engine to gear is done through clutch. The function of clutch is to enable shifting of gear smooth and efficient. Now going by the Explanatory Notes, the items covered under the said Entry of "Clutch and parts thereof" are, (i) Clutch (cone clutch, plate clutch, hydraulic clutch, automatic clutch), (ii) Clutch casing (part of clutch), ....
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....t the subject goods are integral part of iMT Hydraulic Clutch System, classified them under CTI 8708 9300, which is against his own observation. When the item is part of iMT system which includes Gear, TCU, TGS, Sensor, Clutch, Actuator Assembly, the iMT system cannot be classified under CTI 8708 9300 - "Clutch and parts thereof". Further stretching the interpretation to include subject item as part of clutch may lead to absurd inference of including TCU and Sensor also as 'parts of clutch'. We also find that the Explanatory Notes to CTH 8708 only talks about the kinds of clutches covered therein and mentioning of "hydraulic" is only with reference to the kind of clutch and it is in no way related to the 'Actuator'. 11. Going by the above we find that the Actuator Assembly and Tube Connector, even though help in engagement and disengagement of clutch plate, they cannot be considered as 'part of clutch' since they only enhance the function and helps to ease the effort of the driver in shifting the gear. Therefore, they can be considered as 'accessories to the Clutch Assembly System'. 12. We also find that the Importer-Assessee had adopted different classification for the subje....
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....its parts thereof for tractors". Assessee would seriously counter the above by urging that CTI coverer only "Clutch and its parts" and it cannot not read as "Clutch Assembly or Clutch System", as has been the case in respect of CTI 8708 8000, which reads as "Suspension System and parts thereof". If the Entry covers 'Clutch Assembly' or 'Clutch System', we are also of the considered view that subject item will be covered therein as any system or assembly enlarges the scope of the item covered therein, as 'system' and 'assembly', in addition to parts, covers accessories and components, which constitute that system and assembly. 15. In order to appreciate subtility of the above issue of classification, the CTH 8708 is reproduced below: "CTH 8708 - Parts and accessories of motor vehicles of heading nos. 8701 to 8705. 8708 10 - Bumpers and parts thereof : 8708 10 10 --- For tractors- 8708 10 90 --- Other - Other parts and accessories of bodies (including cabs): 8708 21 00 -- Safety seat belts 8708 29 00 -- Other 8708 30 00 - Brakes and servo-brakes; parts thereof 8708 40 00 - Gear boxes and parts thereof 8708 50 00 - ....